SpaceX targets $1.77T IPO while Google raises $847.5B as macro analysts warn of AI bubble risks

SpaceX filed an amended S-1 with the SEC on June 11, pricing its initial public offering at $135 per share for 5.556 billion Class A common stock units. This transaction establishes a valuation of approximately $1.77 trillion with plans to raise $750 billion, scheduled for listing on June 12 under the ticker SPCX. The fixed price mechanism, bypassing the traditional price range, signals absolute confidence in demand and represents a valuation 2.5 times larger than Saudi Aramco's 2019 record of $29.4 billion. Data compiled by Woofun AI shows that despite this aggressive pricing, Morningstar analyst Owens estimates the company's intrinsic value at roughly $780 billion, a 55% discount to the IPO figure. With projected 2025 merged revenue of $18.7 billion against operating losses of $2.6 billion, the valuation relies heavily on a narrative premium derived from Starlink's 9 million users and the xAI merger rather than immediate cash flow.

Concurrently, the market for private tech equity is evolving into an alternative currency, evidenced by a San Francisco homeowner listing a $3 million residence with an option to accept Anthropic or OpenAI shares as payment.

In parallel capital movements, Google increased its equity financing from $800 billion to $847.5 billion, setting a new global record for the largest equity issuance and surpassing Petrobras' $70 billion raise in 2010. Berkshire Hathaway subscribed to $10 billion of this financing, which is entirely directed toward AI computing infrastructure. On the same day, Google announced that Gemini's monthly active users surpassed 900 million, doubling from the prior year, with the Gemini 3.5 Pro model expected to launch in June. The full-year capital expenditure guidance remains unchanged at $180 billion to $190 billion. Simultaneously, Meta launched its WhatsApp AI Business Bot globally, adopting an OpenAI-style token pricing model for consumer-grade AI products. During pilots in India, Mexico, and Brazil, over 1 million merchants joined the platform, which handles customer inquiries, product recommendations, appointments, and transactions. Large tech firms are thus executing a dual strategy: securing record-breaking infrastructure financing while simultaneously monetizing AI products through usage-based billing.

Despite these capital inflows, three independent macro voices issued warnings regarding an AI bubble within a 24-hour window. Bridgewater estimated that Google, Amazon, Meta, and Microsoft will spend $650 billion on AI infrastructure in 2026, a 59% increase from the $410 billion projected for 2025. Bridgewater Co-CIO Jensen stated that the cycle has entered a 'more dangerous phase' because the companies most capable of funding AI are also the largest index weights; once investors perceive spending outpacing returns, pressure from these giants could drag down the entire market. Woofun AI notes that Cohen from DoubleLine highlighted the spread of this bubble into the credit market, while Morgan Stanley coined the term 'Chipflation.' AI demand has driven memory chip prices up 6-fold over the past year, forcing manufacturers to prioritize high-margin data center capacity.

This shift has caused a surge in memory costs for consumer electronics, compelling smartphone and PC makers to either raise prices or accept thinner margins.

Geopolitical tensions escalated as an Iranian drone attacked the Kuwait International Airport passenger terminal, causing 1 fatality and significant facility damage. Kuwait suspended flight operations and expelled Iranian diplomats, while Iran launched missiles and drones at Bahrain on the same day. This marks the first time since the late February U.S.-Israel joint strike on Iran that the conflict has spilled over to the civilian infrastructure of Gulf allies. In Washington, the U.S. House of Representatives passed a war powers resolution by a vote of 215-208, demanding Trump cease military action against Iran, with 4 Republican defections. Fitzpatrick invoked the War Powers Act's 60-day limit, stating, 'It's either comply with the law or change the law; you cannot break the law.' Although the resolution is unlikely to pass the Senate or survive a presidential veto, it marks the first time in over three months that Congress has passed such a final vote, turning Republican anti-war sentiment into a voting record.

The European Commission released the 'European Technology Sovereignty Package' to address reliance on American technology, noting that over 80% of the EU's key digital products, services, and infrastructure originate from non-EU countries. The three-pillared plan includes the Chips Act 2.0, Cloud and AI Development Act, and Open Source Strategy, aiming to establish advanced semiconductor fabs within Europe, double data center capacity within 5 to 7 years, and expand open-source alternatives for cloud and cybersecurity. EU officials told CNBC, 'We must ensure that no one holds the kill switch.' This legislative push is not framed as a race to outpace Silicon Valley in AI or chips, but rather as buying insurance for a worst-case scenario where U.S. executive orders and chip export controls become geopolitical weapons. Europe is codifying the judgment that reliance itself constitutes a risk exposure.

In the broader technology sector, AI music company Suno, valued at $5.4 billion, completed a $400 million Series D funding round led by Bond Capital, doubling its valuation from November last year. Following a copyright cooperation agreement with Warner Music, Suno will launch the first AI model developed jointly with the music industry, signaling a transformation in how copyright lawsuits are priced.

Meanwhile, Stripe, Visa, and Mastercard are jointly building a stablecoin payment platform, with Coinbase in talks to join. Over the past two years, these entities acquired Bridge for $1.1 billion and BVNK, transitioning from individual developments to collaborative infrastructure building. Traditional payment networks are viewing stablecoins as a settlement upgrade rather than a competitive threat. Woofun AI analysis suggests that the ongoing impact of Trump's AI executive order continues to create friction, with IBM's CEO supporting light regulation while Ultraman prepares to testify in Congress against the model approval system.

However, Ars Technica points out that DOGE has trimmed personnel from security assessment agencies like CISA, calling into question the execution capability of the 30-day voluntary review framework.

Google open-sourced Gemma 4, a 12B model with 119.5 billion parameters under the Apache 2.0 license, capable of running locally on a standard 16GB laptop. While most vendors chase larger models, Google is filling the gap in the small-model end of the product line. The World Semiconductor Trade Statistics organization predicts the global chip market will reach $1.511 trillion by 2026, a nearly 90% year-on-year increase. The storage chip sector is projected to see 249.5% growth, surpassing $800 billion in size and overtaking the overall semiconductor market size in 2025. Microsoft unveiled Project Solara AI, an enterprise device platform from chip to cloud designed for AI agents, with concept reference devices including desktop companions and wearable badges. Finally, Bitcoin has touched the Power Law model's low point, a historical position often foreshadowing a rebound, though Citigroup analysts believe the lack of new investors is the core issue, suggesting the Strategy's initial sell-off was merely a trigger rather than the root cause.